Bollinger + RSI, Double Strategy Long-Only (by ChartArt) v1.2

This trading strategy combines the use of Bollinger Bands and the Relative Strength Index (RSI) to generate long trades when the price is considered oversold by both indicators—price crossing below the lower Bollinger Band and the RSI value crossing above an oversold threshold.

To trade this strategy manually on TradingView, follow these steps:

• Set up the Bollinger Bands indicator with a period length of 200 and a standard deviation multiplier of 2.
• Apply the RSI indicator with a period length of 6 and set a single horizontal line at the 50 level to identify the oversold condition (the script sets both RSIoverSold and RSIoverBought to 50, which is unusual but we will follow the script).
• Open a long position when the closing price crosses above the lower Bollinger Band and the RSI simultaneously crosses above the 50 level.
• Close the long position when the closing price crosses below the upper Bollinger Band and the RSI simultaneously crosses below the 50 level.

Improving the "Bollinger + RSI, Double Strategy Long-Only (by ChartArt) v1.2" in manual trading involves fine-tuning its components and introducing new criteria to enhance decision-making:

• Optimize Indicator Settings: Experiment with different period lengths and standard deviation multipliers for Bollinger Bands to better fit the asset's volatility. Similarly, test various lengths for the RSI to find the most responsive yet stable setting for current market conditions.
• Adjust RSI Thresholds: The 50 level for both overbought and oversold conditions is atypical, as conventional thresholds are usually set at 70 (overbought) and 30 (oversold). Adjust these levels to reflect more accurate reversal points relevant to the traded asset.
• Incorporate Additional Confirmation: Add a moving average convergence divergence (MACD) or other momentum indicator to confirm the trend direction before entering trades. This cross-verification will help filter out potential false signals.
• Employ Multiple Time Frame Analysis: Before taking a position, consult higher time frames for trend confirmation. For instance, if trading on an hourly chart, look at the 4-hour and daily charts to ensure alignment with the broader trend.
• Apply Trend Filters: Using a longer-term moving average, such as the 200-period SMA, can help determine the overall trend. Only take long positions if the price is above the moving average, reinforcing a bullish bias.
• Use Price Action Patterns: Enhance entry precision by waiting for bullish candlestick patterns like hammers or engulfing candles at the lower Bollinger Band before initiating trades.
• Set Dynamic Stop-Loss and Take-Profit Levels: Instead of a fixed exit at the upper Bollinger Band, consider a trailing stop-loss that moves with the Bollinger Bands or a predetermined risk-reward ratio to lock in profits.
• Consider Volatility Adjustments: Factor in the Average True Range (ATR) to adjust stop-loss and take-profit levels according to the asset's current volatility, offering a more tailored risk management.
• Conduct Regular Backtesting: Regularly review and backtest your modified strategy to quantify its performance and make data-driven adjustments as necessary.

The Bollinger + RSI, Double Strategy Long-Only is designed for traders who are inclined towards technical analysis and prefer a rules-based approach to capitalize on market conditions that signal potential upward trends. It is especially suited for:

• Swing traders: Gain from medium-term price movements, as the strategy focuses on capturing the swing between oversold conditions and upward reversals.
• Day traders: Those who possess the ability to monitor the markets closely, since the strategy requires vigilant tracking of indicator crossovers.

Traders interested in this strategy should have comfort with momentum indicators and an appreciation for volatility-based envelopes. It's catered towards market participants who are patient enough to wait for clear signals from both the RSI and Bollinger Bands and who can act decisively once conditions for a long entry are met.

• Strategy essence: Employs RSI and Bollinger Bands to identify long entries during oversold conditions and exits when the market turns overbought.
• Automation potential: Can be fully automated through TradingView scripting, allowing systematic trade execution.
• Manual implementation: Alternate by setting up alerts for entry and exit points, followed by personal assessment before making trade decisions.
• Optimization approach: Includes fine-tuning of indicator parameters, application of additional confirmation tools, and analysis across multiple time frames.
• Risk management: Incorporates dynamic stop-loss strategies, considers asset volatility, utilizes price action for enhanced entries, and takes potential profits based on a predefined risk-reward ratio.
• Targeted users: Ideal for swing and day traders comfortable with technical momentum indicators and whose trading style aligns with capitalized gains over short to medium terms.
• User adjustment: Traders can balance automation with manual oversight to suit individual trading styles and risk tolerances.